Jonathan Stempel

(Reuters) – HP Inc (NYSE 🙂 stock soared after Warren Buffett’s Berkshire Hathaway Inc disclosed that it has taken an 11.4% share in HP Inc, a maker of personal computers as well as printers. The stake is valued at approximately $4.2 billion.

Berkshire stated Wednesday that it had nearly 121,000,000 HP shares. This includes 11.1 Million purchased this week.

HP shares rose 5.28 percent, or 15.1% at $40.19 early Thursday trading, following earlier being record-breaking $40.50.

HP, which was seperated from Hewlett-Packard’s former Hewlett-Packard stock in 2015, is a historical technology stock that has enjoyed increased demand from people who spend more time learning at home and working.

Last month, the Palo Alto-based company purchased audio and video accessory maker Poly (NYSE: Plantronics) for $1.7 billion.

Buffett, who is Omaha, Nebraska-based, has struggled recently to release more of the $146.7 million cash pile he accumulated. He cited high market valuations as well as competition from private equity investors.

Berkshire reported that in the month to date, it had committed $22 billion for major investments.

These included a 14.6% stake at Occidental Petroleum Corp. and a $11.6 million purchase of Alleghany Corp. It is Berkshire’s most significant acquisition since 2016.

Buffett’s firm also has dozens of other businesses, including Geico automobile insurance and the BNSF Railroad. In 2021 Buffett had a $161.2 million stake in Apple Inc (NASDAQ:).

HP stated in a statement that Berkshire Hathaway was one of the most respected investors around and they are welcome to invest with us.”

Berkshire didn’t immediately reply to our requests for comment.

Mark Cash, Morningstar Analyst said HP could appeal to Berkshire as HP aggressively returns capital to shareholders via stock buybacks or higher dividends.

Cash stated that HP operates in difficult markets where it is not possible to grow (durably). Therefore, focusing on returns and margins are the best way for shareholders to be rewarded. The tech industry can consider HP a value investment.

In 2021, Berkshire bought $27 billion worth of stock.